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GST: Multi-state

Sunny (CA Business) (401 Points)

16 March 2022

If a company is present in multi-states and has multi-state GSTIN. Say, for e.g. XYZ Pvt. Ltd is present in MP, Bihar, Karnataka, Maharashtra and so on. Company has taken separate GST registration for each state.

Now, for a particular month, if a company wants to issues sales invoice to Bihar Customer. Company issued IGST Bill from MP GSTIN. Will it be valid? Is there any restriction to it?

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19 Replies

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 16 March 2022

If you have registration in Bihar then what is the need to issue invoice from MP ?

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prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 16 March 2022

Yes agree with above reply .

Imthias ahamed Kormath (910 Points)
Replied 16 March 2022

Company registerd address shown in invoices of all branch,Mp branch may issue an Invoice from mp to Bihar .
Bill from despatch from mp
Place of delivery in Bihar
shipping may shown in consignee details with their gstin.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 16 March 2022

There is no restriction since IGST is charged

Imthias ahamed Kormath (910 Points)
Replied 16 March 2022

Igst transferred and used at destination place of supply

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sabyasachi mukherjee (27574 Points)
Replied 17 March 2022

THE IMPORTANT CRITERIA IS FROM WHICH STATE THE ORDER IS RECEIVED.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 17 March 2022

If the Location Of supplier is IGST and Place of supply is in Bihar then IGST is applicable.

You may get a query from GST Dept since it is loss to Bihar govt to that extent of GST share

2 Like

Sunny (CA Business) (401 Points)
Replied 19 March 2022

Company is into services business. It has excess IGST credit available in MP and no credit available in Bihar. So, is there any restriction (under GST Act) of not issuing invoice from one state to another state?

There may be query but point is company having multiple registration in multi-states are not restricted to issue invoices from one state to another state evenif they have local registration, isn't it? Or my assumption is incorrect?

I didn't find any specific restriction where it is not allowed

Imthias ahamed Kormath (910 Points)
Replied 19 March 2022

ITC limited to destination place of supply. Return not filed on the all india basic. unutilized ITC can not transfer from one state to another state.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 19 March 2022

Renting of immovable property can't be supplied online..So one must go to particular Place to avail the service.

A proper in MP can't have registration in Delhi ..

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Sunny (CA Business) (401 Points)
Replied 19 March 2022

Services definition is not limited to renting of property. Services are of wide scope. It can either be professional, technical, consultancy, construction, and so on.

Sunny (CA Business) (401 Points)
Replied 19 March 2022

Agreed. Return are not filed on All India Basis. However, if an entity has multiple registrations, is there any restriction anywhere in GST Act that they have to first supply from the state registration and then only from other state ?

One another example:

Manufacturing Company having registration in say 10 states. If say in a month, due to scarcity (or any other reason) of material they were unable to manufacture in particular State X. Now they have material available in State Y. Will they not be able to sell goods from State Y to State X (even when they have registration in State X)?